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Upside Down On Your Loan? Here Are Two Ideas To Get You Right-Side Up

In this day and age, almost anyone buying a new car has to qualify for a new car auto loan. Doing so can pose challenges, especially if you have not-so-great credit or any dings on your credit history. But buyers should never despair, as there are ways to improve credit score and/or qualify with a lender in spite of a negative credit history.

First, a buyer might get around a negative credit history by providing a lender with a secondary signer, or “co-signer’ on a loan application. This simply means that a second party is willing to vouch for the original signer of the loan contract, and make themselves financially liable should the original signer default on the loan. If you have a friend or family member who know syou well enough to be assured that you will make all payments on time and not leave them financially responsible for your loan, this may be the way to go. This is an option particularly valuable to people who simply have NO credit due to their young age or lack of credit history, and who are financially sound and able to meet their obligations but just have not had time to establish a record of doing so.

Second, a buyer may be able to offer a sizeable down-payment on the vehicle that they wish to purchase, assuring the seller of their financial commitment and their ability to re-pay the balance of the loan. Doing so can negate several problems with securing a car loan in the first place, and can also insure the purchaser of a good history to which to refer during any future purchases. Offering a large down-payment gives the seller a portion of cash in their pocket, which makes a big difference especially to private sellers. Usually private sellers are looking for immediate cash in return for their automobile sale, and will be reassured by a large cash sum up front.

So, what if neither of these two options helps you to get a deal signed for the auto purchase you desire? Sometimes no matter what a consumer does, a purchase simply will not be approved by the seller/lender, and they are left with the option of finding another venue in which to purchase an automobile or go without. Honestly, the best choice in this situation is to be persistent. Go back to your lender again and again with your offers and ask that they be considered based on your current financial status and ability to repay. Refer to your lack of current negative auto loan history and ask that they give you the opportunity to repair your possibly negative credit history by re-paying a loan with them in a timely manner. Sometimes you will be fortunate enough to deal with a loan officer with enough integrity to see what is before him/her and be willing to work with you to move forward.